Three More Banks File Claims Against Dennis Smiley Collateral

by George Waldon  on Wednesday, Apr. 23, 2014 1:43 pm  

Dennis Smiley

Three more banks have joined the growing litigation surrounding the alleged serial loan fraud by former Arvest Bank executive Dennis Smiley.

Loans from Integrity First Bank of Mountain Home, First State Bank of Russellville and First Security Bank of Searcy were secured by common collateral: Smiley's financial interest in an Arvest stock account.

The Integrity and First State loans were made to Smiley, his wife, Cynthia, and their Design For The Home LLC. First Security didn't specify any monetary claims or file any supporting paperwork related to its loans to Smiley.

All three filed their responses Monday in Benton County Circuit Court.

Integrity First Bank claims $159,781 is still owed on a July 13, 2012, loan of $150,000 and a June 24, 2013, loan of $40,100.

Integrity also alleges that Arvest misrepresented collateral backing the loans and breached a contract acknowledging its security interest in the 3,940.74 shares of "Arvest common stock."

As part of its response, Integrity filed a copy of a letter dated July 11, 2012, allegedly signed by Euva Phillips, Arvest senior vice president. Integrity was known as First National Bank at the time.

The letter states that Arvest will make a market for the stock, purchase it and deposit the cash in the assigned account in the event Integrity First requests repayment of the loan.

"The proceeds will not be released by Arvest without your consent," the letter states. In addition to Phillips, the letter bears the acknowledging signature of Dennis Smiley.

First State Bank claims $145,965 owed on a $150,000 loan made on Sept. 21, 2012.

The Russellville bank alleges fraud against Smiley, breach of contract against Smiley and his wife and their Design For The Home, and breach of contract against Arvest.

First State also filed paperwork allegedly signed by Phillips that protected its claim on the Arvest stock account. Copies of control agreements bearing her signature dated Sept. 21, 2012, acknowledged the Russellville bank's secured interest in the account.

 

 

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